Institute of Accounts Business and Finance
Financial Accounting and Reporting
Zeke Lundas is a sole proprietor from the province of Quezon. He is known in planning various events
especially in weddings. Thus, he established his own events consultancy named Lundas Events
Consultancy. For the month of June, the following transactions occurred:
June 1. Lundas invested P250,000 cash in his consultancy business.
June 1. Lundas rented office space and paid P8,000 for two months’ rent in advance
June 2. Lundas issued a promissory note for P210,000 loan from Eastwest bank. The issuance
of note is for the purchase of vehicle. The note carries a 20% interest per annum. The
arrangement with Eastwest bank is that both interest and principal are payable in full in one year.
June 2. Lundas hired a secretary and office assistant with P7,800 monthly salary each. Or each
is to receive P300 per day for the 26-day work month. The employees started work immediately.
June 4. Lundas acquired service vehicle for P420,000.
June 4. Paid Malayan Insurance P14,400 for a one-year insurance coverage on the service
vehicle.
June 5. Acquired office equipment from SM Appliance for P60,000; paying P15,000 in cash and
the balance next month.
June 8. Purchased supplies on credit for P18,000 from Mary Janina Merchandising.
June 9. Paid Mary Janina Merchandising P10,000 for the amount owed.
June 10. Coordinated and finalized bridal arrangement for three couples and collected fees of
P8,800 per couple. Services include reception location, caterer and car service.
June 13. Paid salaries of P6,600. The entity pays salaries every two Saturdays.
June 15. The entity received P10,000 advance fees for the three clients referred.
June 19. Coordinated and finalized bridal arrangements for three couples and billed fees of
P12,000 per couple.
June 25. Zeke Lundas withdrew P14,000 for personal expenses.
June 27. Paid salaries of P7,200.
June 30. Received PLDT bill of P1,400.
June 30. Received P24,000 from two clients for services billed last June 19.
June 30. Settled the electricity bull of P3,000 for the month.
Lundas Events Consultancy
Chart of Accounts
Balance Sheet Accounts Income Statement Accounts
Assets Income
110 Cash 410 Consulting Revenues
120 Accounts Receivable 420 Referral Revenues
130 Supplies
140 Prepaid Rent Expenses
150 Prepaid Insurance 510 Salaries Expense
160 Service Vehicle 520 Supplies Expense
165 Accumulated Depreciation - Service Vehicle 530 Rent Expense
170 Office Equipment 540 Insurance Expense
175 Accumulated Depreciation-Office Equipment 550 Utilitues Expense
560 Depreciation Expense - Service Vehicle
Liabilities 570 Depreciation Expense - Office Equipment
210 Notes Payable 580 Miscellaneous Expense
220 Accounts Payable 590 Interest Expense
230 Salaries Payable
240 Utilities Payable
250 Interest Payable
260 Unearned Referral Revenues
Owner's Equity
310 Lundas, Capital
320 Lundas, Withdrawal
330 Income Summary
